Filing Bankruptcy Has More Pros Than Cons


If you asked a creditor about filing bankruptcy, they would have a list with negative aspects and tell the debtor there is nothing good that will come out of a bankruptcy filing. All you have to do is to type in an Internet search engine asking about , you will be overwhelmed with the positive results. Depending on an individual’s situation if someone is truly in a situation where filing bankruptcy is a feasible way out, the pros will greatly outweigh the cons.

There definitely are negatives to filing for bankruptcy with damage to the debtor’s credit being at the top of the list. But if you consider the individual’s credit prior to filing bankruptcy it really won’t be that much worse. Most people that are considering bankruptcy already are at the point of no return. If you took a look at their credit report you would probably see late pays on most of their debts in the area of 90 to 120 days. Couple this along with their credit cards being tapped out, their debt ratios alone will probably drop their credit score into the 500s. At least after an individual files for bankruptcy their debts will be completely wiped out allowing them to start over rebuilding their credit.

In most cases, the positives of filing bankruptcy are way greater than the negatives. One of the many benefits of filing bankruptcy is the automatic stay. The automatic stay is put in place the moment an individual files their bankruptcy petition. This stops all collection activity from creditors including harassing phone calls, e-mails, nasty letters and legal actions like lawsuits and wage garnishments. For many people this benefit alone is enough to make them file for bankruptcy because of the aggressiveness that creditors are showing these days. The second greatest benefit of bankruptcy is the discharge. When it comes to filing Chapter 7 bankruptcy, all unsecured debts are wiped out with the discharge. Basically, the only debts the debtor has to keep paying on are either secured debts, like an automobile loan and mortgage or debts that cannot be discharged like student loans, child support and other court ordered obligations.

Before you make a decision, that affects your financial future, talk to a bankruptcy attorney to discuss the pros and cons of your personal situation.

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